Sustainable sourcing

Objectives

In order to transition to low carbon steel and to meet our long-term target of achieving net zero GHG emissions by 2050, it is imperative that our suppliers also work toward carbon neutrality. Our objective is to work only with steel companies that are actively engaged in lowering the carbon intensity of their operations, in alignment with UN SDGs 12 (Responsible Consumption and Production), and 13 (Climate Action). We expect our suppliers to meet all the sustainability standards outlined in our Supplier Code of Conduct.

2023 Activity

Eviosys’ metal suppliers are recognised globally for their sustainability efforts and their commitment to low carbon steel. The steel companies with which we work have aligned their climate strategy to the objectives of the Paris Agreement, aiming to maintain the rise in global temperature below 2°C (and preferably below 1.5°C). To achieve this objective, steel producers have committed to a minimum 30% reduction in GHG emissions by 2030 and carbon neutrality by 2050.

One of the main levers for the decarbonisation of the steel industry is expected to come from the adoption of low carbon production processes, such as a shift to electric arcs and the use of hydrogen to fuel them. Dozens of projects that aim to decrease the GHG emissions tied to steel production are currently in process across western and central Europe.

In 2023, Eviosys began to require that all its suppliers be certified as responsible producers of steel

Certification is supplied by ResponsibleSteel, a global multi-stakeholder standard and certification initiative that works to accelerate the steel industry’s transition to net zero, and to ensure that steel has been sourced and produced responsibly. The ResponsibleSteel International Standard is comprised of 13 principles covering key environmental, social and governance issues agreed upon by the organisation’s members — which include the largest companies in the global steel-producing ecosystem — for the responsible production of steel.

The organisation’s independent certification programme identifies and recognises steelmaking sites that have met the requirements of the ResponsibleSteel International Standard. To be certified, companies submit to a two-part audit and approval process. Certifications are valid for three years and are published on the ResponsibleSteel website along with a public audit summary. In addition to responsible metal certifications, all Eviosys suppliers must certify that they do not use Conflict Minerals. These certifications are processed by the Regulatory Affairs and R&D groups through the company’s Materials Database. The Purchasing department cannot buy anything that has not been approved by this process.

To further our progress toward achieving Scope 3 GHG emission reduction targets, sourcing processes and priorities at Eviosys have also evolved. In addition to cost, the Procurement team’s sourcing considerations now include the carbon footprint of the materials it seeks to purchase. We have integrated a solution — provided a specialized third party advisory firm — to analyse all purchases, the geographic location of where the purchase is made, and informaton on its carbon footprint. When purchasing any item, Sourcing Selection can now include carbon footprint considerations in any procurement decision.

Action Plan for the Future

• We will continue to monitor the progress toward more sustainable steel production, and to ensure that Eviosys is taking all measures to use increasingly low carbon steel to achieve our Scope 3 GHG emission targets.
• We will continue to assess and optimise our secondary packaging purchases to maximise the sustainability of our entire supply chain.
• We have begun to require in our agreements that our suppliers have a FSC (forest management certification) or EPAL certification (ensuring a reusable pallet interchange system). At present, 57% of our suppliers have asustainable sourcing certification.
• Going forward, Eviosys will also be fully compliant with the EU’s Carbon Border Adjustment Mechanism (CBAM) declaration.